Bitcoin and several major cryptocurrencies, including Ethereum, Solana, XRP, Cardano, and Dogecoin, saw significant declines on Tuesday as fears over the U.S. economy and trade tensions intensified.
Bitcoin fell 3.2%, dropping to $79,937 after reaching a low of $76,624 during the day. Ethereum experienced a 7.5% decline, dropping to $1,911. The global cryptocurrency market capitalization fell 4.3% to $2.6 trillion.
Other cryptocurrencies like Solana, XRP, Cardano, and Dogecoin also recorded notable losses, with Dogecoin plunging 8.5%.
Investor sentiment soured after former U.S. President Donald Trump discussed a “period of transition” in an interview on Fox News, though he did not clarify whether his tariff policies could potentially lead to a recession. His comments contributed to declines in crypto, stock markets, and the U.S. dollar, with Treasury yields also falling.
“The crypto market is experiencing a major downturn, with Bitcoin dropping below $80,000 and Ethereum reaching a 16-month low of around $1,800,” said Avinash Shekhar, Co-Founder & CEO of Pi42. “Fears of an impending recession and the broader market sell-offs are driving this pullback.”
Macroeconomic concerns such as inflation and rising interest rates continue to add volatility to the market.
“The upcoming Job Openings and Labor Turnover data will be crucial for bulls to regain control,” stated Edul Patel, CEO of Mudrex. “A positive result could help Bitcoin reclaim the $84,000 level.”
Bitcoin’s market capitalization has decreased to $1.585 trillion, with a dominance rate of 61.04%. Trading volume surged by 53.14%, reaching $58.13 billion.
“Bitcoin’s ability to recover and maintain the $80,000 threshold remains essential for the stability of the overall market,” noted Vikram Subburaj, CEO of Giottus.
